Monday’s Top Biotech Stories: Merck, Idenix, Achillion, and BioDelivery Sciences

Merck, Idenix, Achillion, and BioDelivery Sciences could all make big moves this Monday morning.

Jun 9, 2014 at 9:09AM


Let's take a quick look at four stocks -- Merck (NYSE:MRK), Idenix Pharmaceuticals (NASDAQ:IDIX), Achillion Pharmaceuticals (NASDAQ:ACHN), and BioDelivery Sciences (NASDAQ:BDSI) -- which could all loom large in health care headlines this Monday morning.

Merck buys Idenix for $3.85 billion
Shares of Idenix are up more than 236% in pre-market trading this morning, after announcing that it had entered a definitive agreement to be acquired by Merck for $24.50 per share in cash. That deal, which has been approved by the boards of both companies, values Idenix at approximately $3.85 billion.

Idenix does not have any marketed products. Its pipeline is comprised of four hepatitis C treatments -- two are in phase 2 trials, another is in phase 1 trials, and another one is still in preclinical trials. Idenix has also been suing Gilead Sciences in the U.S. and Europe, claiming that Gilead's popular hepatitis C drug, Sovaldi, infringes upon its earlier patents.

Back in April, Merck unveiled interim phase 2 results for an oral combination of two experimental drugs (MK-5172 and MK-8742) for the treatment of genotype 1 of hepatitis C, the most common form of the disease. That combination, when administered with ribavirin, achieved a 94% cure rate without the need for interferon, which can cause flu-like symptoms.

Acquiring Idenix is clearly a way for Merck to diversify its hepatitis C pipeline to catch up to Gilead and AbbVie's efforts in the field. Merck shares are down slightly in pre-market trading.

Idenix news boosts shares of Achillion
Shares of Achillion Pharmaceuticals, which also has a pipeline of four experimental hepatitis C treatments, have jumped over 30% in pre-market trading in response to the Idenix acquisition. However, investors should note that no offers have actually been announced for the company.

Investors should also remember that sovaprevir, one of Achillion's most promising pipeline candidates, was put on a clinical hold by the FDA last June due to abnormal liver results in patients. The company had hoped that the hold would be lifted last September, but to no avail. As a result, shares of Achillion have plunged more than 65% over the past 12 months.

The FDA approves BioDelivery Sciences' Bunavail
Shares of BioDelivery Sciences are set to open at a new 52-week high this morning, after the FDA approved Bunavail, its treatment for opioid dependence. The company believes the drug has peak U.S. sales potential of $250 million.

Bunavail is a mucoadhesive buccal film formulation of buprenorphine, designed to compete directly with Suboxone sublingual film. Sales of Suboxone sublingual film came in at $1.3 billion, in the $1.7 billion U.S. market for opioid dependence treatments, according to Symphony Health Solutions.

BioDelivery expects to launch Bunavail in the third quarter of 2014. BioDelivery has reached a deal with Ashfield Market Access to "provide managed markets and trade support" for the treatment. Bunavail will be BioDelivery's second approved product after Onsolis, a treatment for breakthrough cancer pain. However, BioDelivery only receives royalty revenue from Onsolis, since it previously signed the global marketing rights over to Meda.

BioDelivery is also testing another buprenorphine film, BEMA Buprenorphine, in phase 3 trials for moderate to severe chronic pain. Another pain treatment, Clonidine Topical Gel, is also in phase 3 trials for painful diabetic neuropathy.

Shares of BioDelivery have climbed more than 130% over the past 12 months, and are currently up nearly 3% in pre-market trading this morning.

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Leo Sun owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences. The Motley Fool owns shares of Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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